News Releases

Balen, Belgium (27 February 2009) - Nyrstar NV (the "Company") today released its annual results, including its audited IFRS financial statements for the year ended 31 December 2008.

 

 

The effects of the sudden and severe downturn in the global economy in the second half of 2008 are expected to persist throughout the year, which will make for a very challenging 2009.

 

The response from the zinc industry to the downturn has been encouraging, when compared to previous economic downturns. Zinc miners and zinc smelters are estimated to have made production cuts of approximately 1.7 million tonnes each, equivalent to about 15% of estimated 2009 demand. Such a rapid and significant supply-side response to economic conditions should give support to zinc prices in the near to medium term, and provide for medium to long-term upside. Whilst production costs will benefit from lower energy prices and reduced wage inflation, the collapse in sulphuric acid demand poses an operational risk in the event that Nyrstar's acid output cannot be sold.

 

Our strong balance sheet will enable us to implement further transformational changes across the business, consistent with our continued focus on reducing costs and preserving capital, marketing premium zinc products, improving our retained share of zinc and lead prices through treatment charges and increasing operational flexibility.

 

Roland Junck, chief executive officer of Nyrstar, said, "In what has been extremely volatile economic conditions we have adjusted our production, revised our capital expenditure program, actively managed our net cash position and adjusted our asset portfolio so we can pull through this severe global economic downturn. We will continue to focus on building the foundations for a long-term sustainable future for our plants and our employees in what will be a very difficult and unpredictable trading environment in 2009."

 

Management will discuss these results in a conference call and presentation with the investment community on 27 February at 8:30am UK Time, 9:30am Central European Time. The conference call will be webcast live on the Nyrstar website, www.nyrstar.com, where it will also be available in archive.

 

 

This release includes forward-looking statements that reflect Nyrstar's intentions, beliefs or current expectations concerning, among other things: Nyrstar's results of operations, financial condition, liquidity, performance, prospects, growth, strategies and the industry in which Nyrstar operates. These forward-looking statements are subject to risks, uncertainties and assumptions and other factors that could cause Nyrstar's actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets it serves or intends to serve, to differ materially from those expressed in, or suggested by, these forward-looking statements. Nyrstar cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition and liquidity and the development of the industry in which Nyrstar operates may differ materially from those made in or suggested by the forward-looking statements contained in this news release. In addition, even if Nyrstar's results of operations, financial condition, liquidity and growth and the development of the industry in which Nyrstar operates are consistent with the forward-looking statements contained in this news release, those results or developments may not be indicative of results or developments in future periods. Nyrstar and each of its directors, officers and employees expressly disclaim any obligation or undertaking to review, update or release any update of or revisions to any forward-looking statements in this report or any change in Nyrstar's expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation.

 

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Nyrstar NV is the world's largest producer of zinc metal and alloys, and in addition, is one of the world's largest primary lead smelting and refining companies. The Company produces other valuable by-products including copper, gold and indium, along with significant quantities of refined silver. In 2008 Nyrstar produced more than one million tonnes of zinc. Incorporated in Belgium and with its corporate offices in London (United Kingdom) and Balen (Belgium), Nyrstar has wholly-owned operations in Australia, Belgium, France, the Netherlands and the USA and joint ventures in Australia, China and France. Nyrstar is listed on Euronext Brussels under the symbol NYR. For further information visit the Nyrstar website, www.nyrstar.com.

 

 

Jan Altink

Director IR and

Communications

T: +44 20 7408 8119

M: +44 7912 269 483

 

Craig Chapman

IR Manager

T: +44 20 7408 8195

M: +44 7912 391 370

 

Geert Lambrechts

Communications Advisor

T: +32 14 449 646

M: +32 473 637 892